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Tim Hanni is a trailblazer in the wine industry, renowned for his groundbreaking work in wine education, sensory sciences, and his mission to demystify wine for all. With the prestigious title of Master of Wine, Hanni holds the distinction of being one of the first Americans to earn this credential, marking a significant milestone in his illustrious career.
In this episode, Tim shares how perceptions of wine quality are influenced more by psychological and sensory factors than by price, often making expensive wines indistinguishable from cheaper ones in blind tastings. He introduces the concept of "perceptual individualism," explaining how personal differences in taste perception affect wine preferences. Additionally, he highlights the complexities of wine pricing, contrasting the traditional cost-plus approach with the need to consider market perceptions and branding.
Why you have to check out today’s podcast:
Gain insights into wine perception and psychology. Discover the challenges of traditional wine wisdom to understand the wine industry's myths and realities. Learn a comprehensive view on wine pricing contrasting cost-plus pricing with value-based pricing to help you gain insights into the factors that influence wine prices, including production costs, marketing, and consumer perception."There are people who buy out on price alone. If it's more expensive, it must be better. But there's an inverse relationship between price and quality."
- Tim Hanni
Topics Covered:
02:01 - Discussing the unique nature of wine pricing and how it affects consumer behavior
04:19 - Talking about the impact of wealthy individuals, particularly those from Silicon Valley, entering the wine industry, which he describes as being over-premiumized
06:22 - Discussing the challenges of market segmentation in the wine industry, comparing it to the evolution of the tech industry
10:22 - Critiquing the wine industry's elitism and rigidity, using examples to illustrate how misleading some widely accepted norms are
12:18 - The background and story of 'Two-Buck Chuck'
13:52 - Addressing the often-debated relationship between wine quality and price
16:30 - Introducing the concept of "perceptual individualism"
20:13 - Elaborating on a wine study conducted by Frédéric Brochet at the University of Bordeaux in 2001
24:32 - How wine pricing is determined, focusing on what he refers to as the "bottom-up approach."
25:48 - Explaining the complexities of wine pricing and how factors beyond production costs influence the final price of a bottle
28:07 - How the complexity of pricing wine remains somewhat elusive
Key Takeaways:
“The label's not going to make necessarily all that much of a difference in the margin, but the label plus the provenance." - Tim Hanni
“Unequivocally, sweet wine drinkers have the most taste buds. They have the highest perceptual acuity of any consumers at all. And often you are paying an extreme premium for that sweet wine.” - Tim Hanni
People/Resources Mentioned:
Julia Child: https://en.wikipedia.org/wiki/Julia_Child Trader Joe's: https://www.traderjoes.com/home Fred Franzia: https://en.wikipedia.org/wiki/Fred_Franzia Charles F. Shaw: https://en.wikipedia.org/wiki/Charles_F._Shaw California State Fair Wine Competition: https://calexpostatefair.com/competitions/california-commercial-wine/ Joel Butler: https://www.linkedin.com/in/joel-butler-mw-1697667/ Frederic Brochet: https://www.researchgate.net/scientific-contributions/Frederic-Brochet-2029425754 California Grape Crush Report: https://www.nass.usda.gov/Statistics_by_State/California/Publications/Specialty_and_Other_Releases/Grapes/Crush/Final/2023/2023_Final_Grape_Crush_Report.pdf Robert Parker: https://www.robertparker.com/about/the-rating-systemConnect with Tim Hanni:
LinkedIn: https://www.linkedin.com/in/timhannimw/ Website: https://winebusinesseducation.com/ Website: https://www.myvinotype.com/en/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on July 11, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/high-prices-and-lost-deals/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Saknas det avsnitt?
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Christine Nicholson has a 25-year experience of running companies in multiple sectors. She started, built, and exited multiple successful businesses. She took a business from £0-£4.5m turnover in 15 months. And she also rescued a bankrupt company from millions in debt to an eight-figure exit in under 18 months. More than just experience, she studied hard to become a Chartered Management Accountant with a law degree, a postgraduate degree in Information Systems Management - and a Professionally Accredited and Experienced Business Mentor.
In this episode, Christine shares valuable insights on several key topics related to business valuation and pricing like the owner's emotional attachment, preparing a business for sale and customer feedback for pricing strategies. She provides a balanced view of how to strategically prepare a business for sale, emphasizing the importance of logical pricing decisions and understanding customer value perceptions.
Why you have to check out today’s podcast:
Gain insights on emotional influence in business decisions to help you make more informed, rational decisions that enhance your company's value. Discover actionable tips on how to boost a company's valuation by implementing effective pricing strategies. Learn the importance of customer engagement to understand their perception of value for better pricing decisions."Go and ask your customers what they think of your service. If you were no longer providing this service, what would they be willing to pay for the level of service that they get from someone else?"
- Christine Nicholson
Topics Covered:
01:02 - How did she get involved in pricing
03:20 - Discussing a common misconception among business owners regarding the value of their businesses
03:51 - Highlighting a scenario of the emotional complexities and the challenges business owners face when selling their businesses
12:22 - The psychological dynamics involved when business owners try to value their businesses and their services
14:37 - Explaining the key factors that sophisticated buyers look for when purchasing a company
17:22 - Deeper motivations tied to personal beliefs and values other than price when selling a business
19:40 - How adjusting pricing is one of the quickest and easiest ways to improve a business
22:05 - Christine's approach to helping companies fix their pricing strategies which involves more than simply raising prices
24:07 - Addressing the emotional and logical aspects of business decision-making
25:36 - Christine's best pricing advice
Key Takeaways:
"When you're talking directly to your customers, you have to talk with your heart because you're dealing with one human being typically to another. " - Christine Nicholson
"...if you get your pricing right, then you're going to make more profits; you're going to generate more positive cash flows." - Christine Nicholson
"When it comes to selling your business, all the heart is with the seller, and all the logic is with the buyer." - Christine Nicholson
"When people put their soul into something, they attach a value to it when they're selling their business; ironically, and completely paradoxically, they don't attach the value of the effort that they put into the business to their customers." - Christine Nicholson
"One of the biggest problems that I see from a selling business is where somebody is mentally associating the value of the business by the effort they've put in, but they're not reflecting that correctly in the way that their pricing to their customers." - Christine Nicholson
"You need to believe the value that you are giving to your client." - Christine Nicholson
"Buyers do not want to buy a job. They are buying an investment that has a hard return on capital. And the more certain they are about the return on capital, the higher the money that they will pay and the faster you'll get the cash in your bank." - Christine Nicholson
Connect with Christine Nicholson:
LinkedIn: https://www.linkedin.com/in/christine-nicholson/ Website: https://getexitready.co.uk/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
Patrick Taylor is a global business improvement expert with over 30 years of delivered value leveraging experience across all domains of pricing and margin improvement as well as commercial and financial processes.
In this episode, Patrick shares the critical aspects of effective pricing strategies and their impact on business profitability. He emphasizes the importance of understanding both the external market and customer needs when setting prices. He also advocates for the use of various data visualization tools, such as scatterplots and Pareto charts, to analyze pricing effectiveness and identify areas for improvement.
Why you have to check out today’s podcast:
Gain insights into customer-focused pricing and understand market conditions when setting prices to align pricing strategies with customer expectations. Learn about profitability metrics and delve into the significance of monitoring profitability by customer and product. Understand sales team dynamics to empower sales teams with the knowledge and tools needed to confidently sell at set prices."Listen to your customers, look at your market, look externally first on price."
- Patrick Taylor
Topics Covered:
01:14 - Patrick describing his journey into the pricing world
04:01 - Sharing his insights on how pricing has evolved over the years and his fundamental approach to it
07:22 - Emphasizing on the importance of focusing on customer value rather than getting overly caught up in tools like Excel or AI
08:54 - How to motivate executives to focus more on the value they deliver to customers and the decisions those customers have to make
11:58 - Aligning product offerings with customer needs and maximizing revenue opportunities
13:38 - How convincing a CEO to focus on pricing requires demonstrating that there is a real problem
17:34 - Highlighting the importance of using data-driven KPIs and charts to understand pricing behavior and sales performance and important thoughts about price variance
22:09 - What is it about the Pareto chart that he considers it when doing pricing
26:24 - Discussing the importance of focusing on margin dollars over margin percentages, especially when market conditions dictate pricing
29:14 - Patrick's best pricing advice
Key Takeaways:
"At the end of the day, from a pricing perspective, the customer only cares about two things. They care about the value they get relative to what they're buying and relative to the next best competitive alternative." - Patrick Taylor
"Putting that customer first is the number one thing you've got to do." - Patrick Taylor
"You can create the best model in the world, but if it doesn't work easily for your sales team to work, they can't communicate it to their customer; it's a problem." - Patrick Taylor
People/Resources Mentioned:
Tom Nagle: https://impactpricing.com/podcast/604-insights-into-value-based-pricing-strategies-for-b2b-with-tom-nagle/ Alteryx: https://www.alteryx.com Google: https://www.google.com/?client=safari Tableau: https://www.tableau.com Pros: https://pros.comConnect with Patrick Taylor:
LinkedIn: https://www.linkedin.com/in/patrickjtaylor/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
David Brown is the author of "Banned Business Books, Volume 1, Pricing," a fictional account that narrates how a marketer and a pricing guru stand up and optimize the pricing function in a company.
In this episode, David shares what his book 'Banned Business Books' is all about highlighting the "Nine Boxes" framework for organizing and executing pricing strategies effectively. He emphasizes the critical role of a Pricing Council in bringing order and clarity to pricing decisions within a company. Additionally, he highlights the value of understanding customers deeply and segmenting them to optimize pricing and business outcomes.
Why you have to check out today’s podcast:
Deep dive into the nine boxes framework, a comprehensive tool for organizing and executing pricing strategies. Learn the critical importance of understanding your customers as the foundation for effective pricing. Discover how to set up a pricing council and navigate the challenges of pricing in different organizations."Don't start thinking that you're going to figure out pricing by looking at margins; start with the customers."
- David Brown
Topics Covered:
01:34 - Sharing his pricing journey
03:31 - Discussing the role of finance professionals in relation to pricing and how their focus is on defending and improving margins
06:22 - What made him title his book as Banned Business Books
08:51 - Addressing a critique from Mark about the applicability of his book's content
10:26 - Elaborating on the origin and development of his "nine boxes" framework for pricing
14:09 - Discussing how different aspects of pricing, such as packaging and portfolio optimization fit within his "nine boxes" framework
16:02 - How he continues to use the "nine boxes" as a way to organize and prioritize pricing projects, especially when collaborating with a pricing council
18:07 - Sharing his insights on establishing and maintaining an effective pricing council
20:08 - Agreeing that pricing is a critical function and is often a new and somewhat undefined role
21:04 - Proposing the idea of a pricing council to a CEO
23:08 - David's best pricing advice
25:29 - What the Volume 2 of his book series will focus on
Key Takeaways:
"Price setting is critical; that's where you have the opportunity to start claiming the value that you deserve for your innovations." - David Brown
"The main thing that the Pricing Council has to have is energy and a purpose; the ones that do the best have a clear mandate, meaning that the decisions that the council takes on price are carried out and are effective across the company." - David Brown
"You want to speak with the leaders and the potential figures that are going to be in the pricing council first and understand what makes the company tick and what needs to be fixed before you start fixing things." - David Brown
People/Resources Mentioned:
Unilever: https://www.unilever.com.ph Mosaic: https://www.mosaic.com/sustainability American Express: https://www.americanexpress.com Netflix: https://www.netflix.com/ph-en/ Blackberry: https://www.blackberry.com/us/enConnect with David Brown:
LinkedIn: https://www.linkedin.com/in/dbrown14/ Website: www.bannedbusinessbooks.comConnect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on July 4, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/understanding-fencing-googles-strategy-to-maintain-regional-pricing-for-youtube-premium/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Kristen Berman co-founded Irrational Labs, a behavioral product design company, with Dan Ariely in 2013. Irrational Labs helps companies and nonprofits understand and leverage behavioral economics to increase the health, wealth and happiness of their users.
In this episode, Kristen explores the intricacies of pricing strategies, emphasizing the importance of understanding behavioral economics to influence consumer decisions effectively. She discusses how techniques like the decoy effect, anchoring, and the power of price endings (like 99 cents) can drive customer behavior. Additionally, she highlights the challenges of pricing revolutionary products due to the lack of reference points and the creative approaches needed to establish them in the market.
Why you have to check out today’s podcast:
Deep dive into pricing strategies like the Good-Better-Best model, the Decoy Effect, and the psychology behind price ending to help you understand how to make pricing decisions that drive customer behaviors and increase sales. Find out valuable perspectives on how human psychology influences purchasing decisions which is essential for anyone looking to optimize their pricing or marketing strategies. Discover practical advice and real-world examples to see how you can apply these concepts to your own business."It's all relative. So, what are customers using as a reference point? If it's off your product site, then you need to help them create a new reference point within your product site."
- Kristen Berman
Topics Covered:
01:14 - Sharing how she transitioned into behavioral economics from her role as a product manager at Intuit
03:42 - How behavioral science tie to pricing and product
06:10 - An example of how behavioral economics influence product decisions
08:50 - Explaining the concept of the "paradox of choice"
11:35 - Turning the path of least resistance into the preferred choice
14:30 - Simplifying decision-making for customers with the concept of "good, better, best" product offerings
16:42 - Explaining the decoy effect and how it influences consumer decision-making
19:09 - The reason behind the presentation of pricing options in the context of behavioral economics
22:43 - The concept of framing in sales in the context of product features and the importance of trials in subscription-based models
25:25 - How people often rely on heuristics, or mental shortcuts, when making decisions about prices
28:56 - Kristen's best pricing advice
29:28 - Various sources of reference points
31:19 - The challenge of pricing revolutionary products due to the lack of existing reference points
Key Takeaways:
"People don't come in with an understanding of the exact thing that they want to purchase at the exact moment. And so, our job is to help them understand value, and choice helps people understand value." - Kristen Berman
"We're using the heuristics on how big the number is to make a lot of fairness decisions." - Kristen Berman
"We are relative creatures. We have reference points and we use our reference points to understand value. And so, it's not just the price, it's the reference point that we're using." - Kristen Berman
People/Resources Mentioned:
Intuit: https://quickbooks.intuit.com/ TikTok: https://www.tiktok.com Airbnb: https://www.airbnb.com Dan Ariely: https://danariely.com/all-about-dan/ One Medical: https://www.onemedical.com Steve Jobs: https://en.wikipedia.org/wiki/Steve_Jobs Apple: https://www.apple.com/ YouTube: https://www.youtube.com Netflix: https://www.netflix.com/ Study: https://play.google.com/store/apps/details?id=com.thesoundagency.study&hl=en_ZA&pli=1Shopify: https://www.shopify.com/phConnect with Kristen Berman:
LinkedIn: https://www.linkedin.com/in/kristenberman/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on June 27, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/how-to-charge-different-customers-based-on-value-received/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Florian Bauer is an internationally sought-after expert and speaker on the subject of price psychology and behavioral pricing. He is an honorary professor at the Technical University of Munich and author of several books on price research. He also has a doctorate in Psychology at TU Darmstadt, MIT, and Harvard.
In this episode, Florian talks about how discounts can give you short-term gain but cost you long-term. He underscores that there are other means to incentivize customers without diminishing a products’ value perception. And that cashback is one thing to consider other than discounts. He also talks about buyers’ irrationalities and how to use Behavioral Economics to influence their decision-making and let it work in your favor.
Why you have to check out today’s podcast:
Learn about the psychology of price structure and how it influences consumers’ buying behavior Find out what you can, what you should, and what you should not do when giving a discount Learn how Behavioral Economics can help you influence buyers’ decision-making and maximize your company’s profit“If you want to price or sell something, you have to think in two dimensions. You have to think about what people want. That's the traditional value-based approach. And you have to think in the dimension of how they decide.”
- Florian Bauer
Topics Covered:
01:28 - How Florian got started in Pricing
02:25 - What the psychology of price structure is all about
03:22 - What a price structure looks like
04:12 - What’s the psychology behind using cashback than just lowering the price
06:03 - How do discounts differ from cashback
07:39 - The feeling of disconnect with cashback
08:20 - Cashback being an icing on the cake that can potentially make you feel more decided about your choice
10:02 - What’s the disadvantage of discounting
11:36 - What behavioral economics means for pricing
16:15 - Different people behave differently when it comes to decision irrationalities
18:00 - His thoughts on the ethical issue about Behavioral Economics
23:22 - What is Behavioral Economics showing us and why this works in the B2B world
25:38 - How heuristics simplify complex decisions
29:35 - Florian’s best pricing advice that can significantly impact your business
Key Takeaways:
“Never ever give a discount without anything the customer has to give in return.” - Florian Bauer
“That's the issue with discounting. It really works very well short-term. So, you have to gain short term, but you have to cost long-term.” - Florian Bauer
“If I want to sell somebody something, I need to know what he wants, or she wants, and I need to adapt my sales approach and my pricing model, potentially, to how he decides.” - Florian Bauer
“For me, the purpose of marketing, pricing, and sales is to influence decisions. So, there is no reason to have a marketing campaign or a marketing team if you would not have the idea that I can influence my customers' decision in my favor.” - Florian Bauer
“I think when we talk about value and price acceptance, it's very much a story. And there is not one story better than another one. People hate to make decisions, they want to be made decided and with some stories, they are quicker in deciding than in others.” - Florian Bauer
“Think about that you're not only selling value; you’re also managing decisions. If you keep that in mind when you design your pricing model, you also avoid the traditional clash between pricing and sales because you're also able to tell your salespeople how they can actually execute your pricing strategy to make the customers actually follow the decision or the directions you want them to.” - Florian Bauer
Resources / People Mentioned:
Daniel Kahneman: https://en.wikipedia.org/wiki/Daniel_KahnemanConnect with Florian Bauer:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/profdrflorianbauer/Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
This is an Impact Pricing Blog published on June 20, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/revamp-your-pricing-strategy-pros-cons-of-4-popular-models/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Steven Forth is Ibbaka’s Co-Founder, CEO, and Partner. Ibbaka is a strategic pricing advisory firm. He was CEO of LeveragePoint Innovations Inc., a SaaS business.
In this episode, Steven explores the concept of generative pricing, emphasizing how AI can transform pricing strategies through real-time value measurement and dynamic proposal evaluation. He discusses how composable AI applications and generative adversarial networks might drive advancements in pricing and proposal management. Practical advice is also provided on using AI to optimize proposals, including developing effective evaluation rubrics and leveraging AI for better decision-making.
Why you have to check out today’s podcast:
Delves into the concept of generative pricing and how it can revolutionize pricing strategies through real-time value measurement, composability, and AI-driven proposal evaluation. Discover actionable advice on using AI to evaluate and improve proposals before submission which includes tips on developing effective rubrics and using AI tools to enhance proposal quality. Explore the future of pricing in a world increasingly influenced by AI, including the challenges of scaling costs, measuring value, and managing pricing with AI."Build a system that will evaluate your proposals, including your pricing proposals, before you send them out. You can do this using your currently available AI tools."
- Steven Forth
Topics Covered:
01:01 - Introducing the concept of "generative pricing" in the context of generative AI applications
02:17 - Elaborating on the concept of generative pricing by discussing the cost dynamics associated with generative AI applications compared to traditional SaaS applications
04:35 - Discussing the differences in cost between traditional search engines like Google and AI-powered services like Perplexity, highlighting the implications for generative pricing
09:28 - Shift in cost structures and the emerging properties of generative AI applications
13:54 - Configuring solutions that optimize the value delivered to customers continuously
16:02 - The potential for generative AI to enable more accurate and transparent value-based pricing models
18:41 - Explore the concept of generative pricing in the context of proposals and outcome-based pricing
22:10 - The idea of making predictions about the future of pricing, particularly in the context of generative AI, using a website called longbets.com
23:01 - How generative pricing necessitates a rethinking of pricing approaches
24:01 - Generative AI and how it affects cost management and value capture
25:30 - Discussing the implications of generative AI on the value and pricing of applications, particularly focusing on composable AI
28:42 - Steven's best pricing advice and actionable steps for leveraging AI in proposal evaluation and improvement
Key Takeaways:
"Yes, we have to be aware of costs. And the pricing systems are also going to need to be cost-management systems. But what's going to drive the configuration is value optimization." - Steven Forth
"Is generative pricing a clear, fully baked concept today? No, it's not. But I believe that generative AI is going to cause enough change that it's going to force us to rethink how we approach pricing." - Steven Forth
"...possibly as we get more sophisticated and flexible models, we'll be able to more formally manage the relationship between emotional values and also do a better job of pricing in order to reflect externalities." - Steven Forth
"We're going to have to really start designing our proposals and our pricing with the assumption that the consumer or one of the consumers is actually going to be an AI. And I think that also changes how we think about the pricing as well, and we're gonna need AIs in order to generate pricing that other AIs are going to accept." - Steven Forth
People/Resources Mentioned:
Intercom: https://www.intercom.com Perplexity: https://www.perplexity.ai Google: https://www.google.com/?client=safari Gemini: https://gemini.google.comTheory Theory Ventures: https://theory.ventures Oracle: https://www.oracle.com Microsoft: https://www.microsoft.com/en-ph/ Totogi: https://totogi.com Long Bets: https://longbets.orgConnect with Steven Forth:
LinkedIn: https://www.linkedin.com/in/stevenforth/ Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on June 13, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/collusion-vs-implicit-collusion-navigating-legal-and-profitable-pricing-strategies/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Leah Tharin brings B2B SaaS to the product-led growth retention light. Advising organizations to bring growth, product, marketing, and sales in line, scaling to move down or upmarket. She works in the operational details and not the hypothetical clouds with her clients.
In this episode, Leah explains the differences between product-led growth (PLG) and sales-led growth, highlighting the benefits of usage-limited freemiums in PLG strategies. She emphasizes the importance of focusing on core value and customer experience when designing freemiums. She advises on pricing strategies, recommending minimal price changes during the early stages and frequent experiments as the company matures.
Why you have to check out today’s podcast:
Find detailed definitions of key business concepts like product-led growth (PLG) and sales-led growth (SLG) that offer valuable comparisons to help you understand their differences, as well as applications. Learn practical and actionable advice on pricing strategies, emphasizing the importance of initial pricing for early-stage companies and the need for frequent pricing experiments as the company grows. Deep dive into effective business practices, such as leveraging freemium models and understanding the importance of customer value in pricing strategies."If you cannot convince people to use your stuff for free, then I think you should not have any price on your product."
- Leah Tharin
Topics Covered:
01:32 - Why she describe the relationship between pricing and value as stressful
03:09 - Defining a product-led growth
06:47 - Leah expanding the product-led growth definition to include interactive demos and automated marketing tools
08:49 - How companies adopt product-led growth to improve cost efficiency and compete with more agile, cost-effective competitors
11:22 - Sales-led growth defined
14:20 - What does a product-led growth focuses in getting into
20:02 - Understanding a Freemium product offer
24:10 - Why she prefers a Freemium model that is usage-limited
26:46 - An outcome-driven way of looking at the minimum viable product
29:31 - Leah's best pricing advice
Key Takeaways:
"Traditionally we talk about product-led growth in the terms of trials, freemiums, getting something for free forever until you buy it, and so forth. But I also talk about it in the context of getting an interactive demo where you understand what they now do inside of this demo." - Leah Tharin
"...what we try to do in product-led growth is exactly this. It's not so much about how much the customer spends in the initial payment with us or like even the first couple of months, maybe even year. It is about the lifetime value, how fast we can escalate this of course as well because this is also a sign of customer value." - Leah Tharin
"For commoditized markets, product-led growth, if it can be done, it's not always the right thing, but definitely the choice that you have to make. In new verticals with extremely complicated integrations, we tend to be more sales-led for sure." - Leah Tharin
People /Resources Mentioned:
Netflix: https://www.netflix.com Spotify: https://open.spotify.com Hubspot: https://www.hubspot.com Salesforce: https://www.salesforce.comConnect with Leah Tharin:
LinkedIn: https://www.linkedin.com/in/leahtharin/ Website: https://www.leahtharin.com/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on June 6, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/price-segmentation-in-action-why-geography-matters-for-your-wallet/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Mac Kremer leads the pricing strategy practice at K1 Investment Management. He is experienced in B2B SaaS investing and value creation work.
In this episode, Mac shares strategies for growing SaaS businesses through price increases, upsells, cross-sells, and increased usage. It discusses the complexities of implementing pricing systems and emphasizes the importance of flexibility and understanding your pricing model. Additionally, it highlights the need to educate sales teams on value-based selling to reduce discounting and improve sales effectiveness.
Why you have to check out today’s podcast:
Discover valuable strategies for growing SaaS businesses, including ways to expand, manage and track revenue streams effectively. Understand the complexities of implementing pricing systems in various-sized companies and find out solutions from simple tools to more sophisticated systems. Learn practical tips on communicating value to customers, helping sales teams to sell more effectively reducing the reliance on discounts."Sit down with whoever's responsible for pricing, decide to set up a committee and a cadence and just start talking about it more and more."
- Mac Kremer
Topics Covered:
01:35 - How Mac found himself in pricing
02:42 - Describing his role at a private equity firm as both an advisor and consultant
03:38 - Discussing the importance of customer conversations in understanding value propositions
05:47 - Explaining that value can also include benefits beyond profit
07:28 - Similarities and differences between B2B and B2C purchasing decisions
08:49 - Using ROI calculators and the ability of sales reps to contextualize ROI within the business's specific goals
09:56 - How ownership of pricing in a company depends on its stage of development
14:01 - Importance of forecasting and budgeting for pricing activities
16:00 - Understanding the sources of revenue growth highlighting the four ways to grow a customer: Win, Keep, Grow
19:49 - What to focus on when it comes to net revenue retention
21:35 - Variety of pricing systems used and how it depends on the complexity of pricing models used
23:55 - The complexities of implementing and managing pricing systems as companies grow
25:57 - Helping salespeople understand and communicate value
29:06 - Mac's best pricing advice
Key Takeaways:
"Customer conversations are so critical to understanding the value proposition of your solution, and where you kind of see your customer's perceiving value before you even start to talk about price." - Mac Kremer
"The best place to start when you're having customer conversations is, you can go in and you can kind of engineer the true value calculator, the EVC, the economic value to the customer. But I think it's also just understanding their perception of the value that they're receiving. Because I think value comes in a lot of different forms, even outside of just profit." - Mac Kremer
"A lot depends on the complexity of your pricing model when you go to think about what system we should be using?" - Mac Kremer
People/Resources Mentioned:
Maxio: https://www.maxio.com Chargebee: https://www.chargebee.com Gainsight: https://www.gainsight.com NetSuite: https://www.netsuite.com/portal/home.shtmlSalesforce:https://www.salesforce.com Tableau: https://www.tableau.comConnect with Mac Kremer:
LinkedIn: https://www.linkedin.com/in/mac-kremer/
Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on May 30, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/the-price-is-never-right/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
With 10+ years in strategic data-marketing, digital, AI and management consulting across sectors like automotive, travel, pharma, and BPO, Fabien Cros has been recognized for his knack to develop and deploy impactful, data-driven solutions. His expertise spans data consulting, AI solutions, UX, marketing analytics, and more.
In this episode, Fabien shares successful case studies, such as Patagonia and Decathlon, demonstrating how companies can transition to more sustainable business models and achieve higher profitability. Also, learn practical advice and strategies that can be directly applied to a company's business operations, helping make informed decisions and drive impact.
Why you have to check out today’s podcast:
Discover how to incorporate sustainability into your business models and pricing strategies, gaining valuable insights along the way Gain in-depth knowledge and practical advice on leveraging sustainability as a competitive advantage, backed by real-world examples and data Learn why there is a significant untapped market for sustainability-focused products and services, making it relevant for businesses aiming to capture new customer segments and drive profitability"Go in depth, over-segment your market because you need to understand this new trend emerging around sustainability. Because it's a major untapped market for a lot of brands and companies."
- Fabien Cros
Topics Covered:
01:52 - How he got into pricing
03:43 - Introducing the concept of integrating pricing strategies with sustainability goals
10:25 - Discussing the challenges and benefits of integrating sustainability into pricing strategies
14:23 - Delving deeper into the concept of sustainability in pricing -- that sustainability is more than just a feature; it's a fundamental shift in business practices
18:30 - Acknowledging challenges integrating sustainability in pricing but also highlighting growing consumer awareness and regulatory pressures around sustainability
22:46 - The potential for sustainability as a competitive advantage in pricing strategies
27:21 - Examples of large companies successfully integrating sustainable practices
30:23 - Fabien's best pricing advice
Key Takeaways:
"What we say with Pricing for the Planet is, move to what we call 21st century concept which is value-based pricing. That way you can create additional revenue and additional profits. That way you can invest into sustainability." - Fabien Cros
"The data is showing us that you have a subset of the population. They're so passionate and they're so convinced that it's crucial that you cannot forget this market and this market segment could actually fuel a lot of the money and a lot of the financial need that is required to move to a more sustainable business model." - Fabien Cros
“We are trying to convey this message that sustainability could be viewed as a feature for the end users, but it's a new way of doing business.” - Fabien Cros
People/Resources Mentioned:
Accenture: https://www.accenture.com/ Stephan Liozu: https://impactpricing.com/podcast/582-segmentation-strategies-uncovered-driving-revenue-through-focus-and-value-with-stephan-liozu/ Schneider Electric: https://www.se.com/ww/en/ Patagonia: https://www.patagonia.com/home/ Doc Martens: https://us.rewair.drmartens.com/ BCG: https://www.bcg.com Michelin: https://www.michelinman.com Decathlon: https://www.decathlon.comConnect with Fabien Cros:
LinkedIn: https://www.linkedin.com/in/fabien-cros-3b66a332/ Website: https://www.pricingfortheplanet.com/Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on May 23, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/how-value-based-selling-marketing-work-together-to-drive-increased-profitability/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ -
Dr. Thomas (Tom) Nagle founded the Strategic Pricing Group (now part of Monitor Deloitte) in 1987 soon after publication of the first edition of The Strategy and Tactics of Pricing. For more than three decades, he has advised companies, primarily in B-to-B markets, on how to manage more profitably the five elements of pricing strategy: Value Creation, Value Communication, Price Structure, Pricing Policy, and Competitive Price Setting.
In this episode, Tom shares how value is perceived and measured by customers, emphasizing the distinction between economic value and willingness to pay. He also delves into the complexities of pricing negotiations, highlighting the importance of understanding customer perceptions and effectively communicating the impact of products or services on their business outcomes.
Why you have to check out today’s podcast:
Understand the intricacies of value-based pricing, distinguishing between economic value and willingness to pay, and providing real-life examples illustrating these concepts effectively Delve into these two critical decisions buyers make to help you better understand and influence customer purchasing behaviors Find out practical advice on handling price negotiations, emphasizing the importance of "gives and gets" and strategies to avoid undermining your pricing integrity"Don't ever believe what the customer is telling you upfront about what their value is. They may believe it, but they don't know the impact."
- Tom Nagle
Topics Covered:
01:29 - His early experiences with pricing influenced by his grandmother and how he got into pricing professionally
03:16 - How it is more effective to focus on market response to price changes and gather qualitative insights from clients than just precisely measuring elasticity
08:49 - Important thoughts on why pricing didn't matter much then before its deregulation
11:28 - Explaining the concepts of value and value-based pricing with an example illustrating the point
16:56 - The need to create policies to maintain price integrity and managing negotiations to prevent undermining value capture
23:25 - Discussing the concept of value-based pricing and sharing an insightful example where a service's value was evaluated against the status quo rather than a competitor
26:16 - Tom's best pricing advice
Key Takeaways:
"The goal is not to try to put a line between them that's a weighted average of the high prices and the low prices, and call it a demand curve. The goal is to figure out why we have all this variation and use that variation to create segments that eliminate the trade off between price and volume." - Tom Nagle
"The value isn't in the product. You can study the product from now until kingdom come, and you are never going to understand the value by studying the product. You have to study how the products' benefits impact the customer's income statement." - Tom Nagle
People/Resources Mentioned:
Financial Analysis for Profit-Driven Pricing: https://sloanreview.mit.edu/article/financial-analysis-for-profitdriven-pricing/ Walmart: https://www.walmart.com DuPont: https://www.dupont.com Malcolm Baldrige National Quality Award: http://asq.org/quality-resources/malcolm-baldrige-national-quality-awardConnect with Tom Nagle:
LinkedIn: https://www.linkedin.com/in/thomas-tom-nagle Email: [email protected]Connect with Mark Stiving:
LinkedIn: https://www.linkedin.com/in/stiving/ Email: [email protected] -
This is an Impact Pricing Blog published on May 16, 2024, turned into an audio podcast so you can listen on the go.
Read Full Article Here: https://impactpricing.com/blog/roi-calculators-busting-myths-and-building-trust-in-b2b-sales/
If you have any feedback, definitely send it. You can reach us at [email protected].
Now, go make an impact.
Connect with Mark Stiving:
Email: [email protected] LinkedIn: https://www.linkedin.com/in/stiving/ - Visa fler
